In raging bull markets, few investors think to allocate more of their assets to defensive sectors such as consumer staples. But, with global growth waning and recession alarms sounding, this seemingly boring sector is once again proving its importance. While no market is completely recession-proof, the consumer staples sector has stood the test of time better than most.
When the economy begins to slow, risk assets such as equities often become more volatile. Some sectors are especially vulnerable to economic cycles, making them prone to extreme volatility during periods of slowing growth or recession.
This leads us to our latest reaffirmation: a consumer staples stock with more than five decades of dividend increases. More recently, our pick has delivered consistent revenue growth due to steady demand for its products and higher food prices. The popularity of its brands makes us confident that our pick will continue to offer value even during the most adverse economic scenarios. Its next ex-dividend date has been declared for Friday, July 8.
You can check out the Best Consumer Staples Dividend Stocks List to explore all the stocks.
